Jac Vanek Case Study

The ROI of a Brand Advocate Program
I’m an Ambassador,
and I’m More
Influential Than You
Think!
Brand Ambassadors are fanatical consumers that
passionately represent and actively recommend a brand
Word of mouth marketing and peer to peer social recommendations are more valuable than
ever. Brands big and small now depend heavily on consumers to endorse their products and
influence a wider audience online and in the real world. Fancorps brings structure,
performance tracking & actionable guidance to today's stream of social media, which has
become even more important than traditional marketing.
Defining the earned media value of the social interactions of
ambassadors is key to determining the true influence and impact they
have on the bottom line.
Jac Vanek Case Study
Jac Vanek needed to organize their Brand Advocates and
manage the interactions already happening on the social web.
By integrating an ambassador program they will be able to steer the social stream
and exponentially increase the amount of positive recommendations, reviews and
mentions about their brand and its products and services. The overall business
goals of the program are to:
Develop a stronger bond with their core consumers
Increase the amount and quality of social interactions
Track the influence and impact of all activities
Reward their most engaged ambassadors
Define value of the program via impressions and sales
Company Confidential 02.06.12
Tuesday, September 18, 12
1
The ROI of a Brand Advocate Program
the INVESTMEN
T
the RETURN
Total Cost of Jac Vanek Brand Ambassador Program (12 Months)
1
Fancorps Platform License
$60,000
2
Community Management
$30,000
3
Rewards & Incentives for Ambassadors
$10,000
Total Costs
$100,000
Integrating a brand ambassador
program is an essential component of
successful social media marketing
campaigns. There are three main costs
associated with a program.
(1) A platform such as Fancorps that allows for
the communication, management and
engagement of a brand’s core consumer base.
(2) A skilled community manager with a solid
understanding of social media marketing
techniques.
(3) A steady flow of exciting rewards and
incentives to continually encourage advocacy.
Fan Acquisition
Engagement
Interaction
Company Confidential 02.06.12
Tuesday, September 18, 12
2
The ROI of a Brand Advocate Program
Over the course of the campaign Jac Vanek was able to
identify and recruit over 4K brand ambassadors to optin to their custom branded community.
the RETURN
With Fancorps’ task driven, gamified platform Jac Vanek energized their ambassadors
creating quality recommendations, mentions and reviews on the social web. In
addition to these highly valuable impressions they also utilized the community in a
number of other powerful ways including offline promotions, user surveying/feedback
and focus group sourcing.
Since the Fancorps platform tracks all recommendations, mentions and
reviews and requires ambassadors to prove their social and real world
interactions it is easy to define the ROI of the Jac Vanek campaign.
The average number of friends
& followers each Advocate
reaches through their personal
social channels when
recommending the brand
Defining the Return On Investment
Number of Active Advocates
(10% of community)
Total Social Recommendations
48K
X
Average Social Impressions Per Recommendation
It is estimated that a brand
advocate impression is worth up
to 10X that of a online ad
impression.
To determine the earned media
value simply subtract the total
costs of the campaign from the
media value
Earned Media is publicity gained
through non-advertising
promotional efforts & WOM
460
300
=
Total Social Impressions
14M
X
Brand Advocate CPI
(cost per impression)
$0.05
=
Media Value
$722K
Cost of Fancorps Platform License
$60K
Cost of Community Management
$30K
Cost of Rewards & Incentives
$10K
Earned Media Value
$622K
=
ROI of Campaign
Calculate the ROI by dividing the Earned Media
Value ($640K) by the cost of the program ($100K)
622%
I
O
R
= 6X
Company Confidential 02.06.12
Tuesday, September 18, 12
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